Wednesday, 02 July 2014 08:51
Housing includes taxes and insurance
You recommend that no more than 25 percent of your monthly income go toward a house payment. Does this figure include taxes and insurance too?
Yes, it does. Your housing payment should not exceed 25 percent of your monthly take-home pay on a 15-year, fixed-rate mortgage.
When it comes to buying a house, the goal is not to live in the TajMahal or have something so expensive you end up being “house poor.” When buying a home, especially for first-time homebuyers, you should look for something nice — in a decent area — that you can get paid off as quickly as possible.
It’s really not a big deal if you cheat a couple of percentage points one way or the other. But 25 percent is a good rule of thumb to ensure you’ll still have money left over to live on, save and invest!
Be very kind and very grateful
My mom and dad took out a whole life insurance policy for me when I was born. The cash value is $2,500, and my husband and I want to cash it out and put the money toward paying off debt. We already have larger term life insurance policies in place, but I’m worried that doing this will offend my parents. What should I do?
I think the real question is how many toxic things will you do because you’re afraid you might offend them.